“Affordability Checks” To Be Debated In Parliament After Backlash

The UK Government’s frictionless affordability checks may not go ahead as planned after a petition of infuriated gamblers has reached more than 100,000 signatures.

Ministers had announced plans earlier in the year to run checks on accounts of those who lose £125 in a month or £500 in a year, and it was said that those in the poorer areas of the UK would be scrutinised more than those in more well-to-do areas.

A Big Warning

Gambling bosses have warned that the proposed “monitoring” tactics could wipe £250 million off industry revenues and there would be one gambling activity in particular that would be hit the hardest – the horse racing industry! 

More than 100,000 disgruntled gamblers have voiced their concerns with the proposed changes in a petition, which will now be debated in parliament. It reads:

“Stop the implementation of betting affordability/financial risk checks. We (unknown), want the Government to abandon the planned implementation of affordability checks for some people who want to place a bet. We believe such checks – which could include assessing whether people are ‘at risk of harm' based on their postcode or job title – are inappropriate and discriminatory.

The proposed checks could see bettors having to prove they can afford their hobby if they sustain losses as low as £1.37 per day. We accept the need to help those with problem gambling but more intrusive checks triggered at a higher threshold risks bettors moving to the black market where there are no consumer protections or safer gambling tools. We are concerned there will also be a negative impact on British horseracing’s finances due to a reduction in betting turnover and resulting fall in Levy yield.”

Tackling The Consequences

On November 16^th, the Government responded by saying:

“The government and Gambling Commission recognise concerns some have with the proposed system of financial risk checks for the highest spending online customers to help identify and tackle gambling related harm. As outlined in the gambling white paper we are seeking to balance this freedom with the necessary action to tackle the devastating consequences which harmful gambling can have for individuals and communities.

Both the government and the Gambling Commission have been clear that we would not mandate the checks proposed in the consultation until we are sure that they will be frictionless for the vast majority of customers who would be checked. We estimate that the financial risk assessment using data from credit reference agencies will only impact those in the highest 3% of gambling losses.”

But what about the risk to the horse racing industry?

Julie Harrington, Chief Executive of the British Horseracing Authority, said: “The fact that we hit more than 100,000 signatures in a few weeks is a clear demonstration of the depth of opposition felt by punters across Britainto the proposed financial risk/affordability checks. These checks will have an impact on so many people who bet safely on horseracing, so it is vital that the issue is debated and properly scrutinised by MP’s. It is also important that the Government recognises the voices of more than 100,000 racing fans and bettors and looks again at the potential impacts of its proposed policy.”

The Government responded by stating that the “white paper’s estimate was that financial risk checks will reduce online horserace betting yield by 6% to 11%, which would in turn reduce racing’s income by £8.4 to £14.9 million per year (0.5% to 1% of its total income) through a reduction in levy, media rights and sponsorship returns.”

Due to the petition surpassing 100,000 signatures, MP’s must now discuss it in parliament. What do you make of it? Let us know your thoughts below.

Source:

"Stewards Enquiry Gambling Crackdown to Snoop On Punters’ Bank Accounts May Be Scrapped As More Than 100,000 Sign Petition", thesun.co.uk, November 30, 2023.